Personal Finance Planning with Xero

Personal Finance Planning with the help of Xero and Smart Business Solutions

If you were to add up all your earnings for a lifetime, the total would come to hundreds of thousands, if not millions, of dollars. So why is it so many of us struggle financiallyand find ourselves living from one pay check to the next? Even if you only work for 40 years – which is rare these days given that many people continue to work long past traditional retirement age – and clear a typically average income, your lifetime earnings still add up to a lot of money. Sure, “money talks”, but for most of us it barely says hello before waving us goodbye, leaving us wondering why the month always seems to last far longer than the money does. Well, you’re not alone. And the good news is, there’s a simple way to pinpoint exactly where all your hard-earned income is going. A solution that will help you “mind your pennies so the pounds look after themselves”.

A Xero Effort Solution

Yes, keeping track of your personal finances is tedious and demands a certain level of commitment. But the benefits surely make it worth the effort, right? Still many of us simply cannot muster the discipline required to consistently store all our receipts, and record our expenditure. But what if there was a user friendly accounting software package that can help you easily track and categorise your expenditure with hardly any effort on your part.Imagine the clarity that would come from knowing how much you’ve spent and on what. You’d be able to identify what percentage of your earnings is going towards mortgage/rent; vehicle expenses; groceries; schooling/education; eating out and entertainment; mobile devices and the Internet; medical expenses; and so on. And no doubt, it’d be a real eye opener.

Ignorance may be bliss, but knowledge is power and wouldn’t you like to have more control over your personal finances? Well, the more objectively you can observe how your lifestyle and spending habits impact on your overall expenditure from month-to-month, the better positioned you’ll be to make decisions about how and where you can alter your spending habits, and even start saving.

We live in a digital age where most of us use credit / debit cards or pay by EFT when shopping. This means more money is now exchanged electronically than via cash, which adds up to a lot of digital transactions. And a lot of data. The beauty of data is it can be analysed using multiple parameters, such as personal finance classifications. And that’s how a brilliant tool like Xero Cashbook works.

How Xero Cashbook Works

First, for those of you who’re wondering what Xero Cashbook is, it is the non-tax-tracking version of the Xero software used by businesses. Xero Cashbook is available online, and is designed to analyse and categorise all your electronic transactions. This helps to give you a very clear and instant picture of your financial position. Xero Cashbook also gives you a clear overview of all your bank and credit card accounts. This revolutionary software from Xero is the solution to tracking and controlling your personal finances.

Using Xero Cashbook, you can easily categorise what you spend and what you save. This level of control helps you determine if your money is going towards essentials or if you’re taking the whole “splashing out” thing a little too far. And as online security is a concern these days – particularly when it comes to sensitive digital data – Xero Cashbook comes with a built-in 128-bit SSL encryption code. This is the same level of encryption used by online banks so you can rest assured your personal finance data is well protected.

Another bonus of using Xero Cashbook is that you can invite people you trust – like your spouse / partner and your accountant or financial advisor – to view your Xero reports at no extra charge. This means your trusted advisor or partner can get an instant overview of your finances and spending habits, and so help you stick to your planned budget. And hopefully encourage you to put aside some savings. Just image how good it will feel to have such control over your personal finances.

And as Xero Cashbook is web-based, you can access it remotely, even using your smartphone or mobile device. Xero Cashbook is really simple to set up, and once done, the categorisation and analysis of your finances is automatically taken care of. The way we see it, the more people who take control of their finances, the more people who will likely prosper and have a happier financial future.

Want better control over your personal finances? Contact SMART Business Solutions today to learn how to make your income stretch further and grow your future savings.

Want to grow your business & improve cash ﬂow?

You need SMART solutions for YOUR business, not just annual tax compliance! Get the SMART team working with you. Call SMART Business Solutions today on 03 5911 7000 or reception@smartbusinesssolutions.com.au.